Dbag Fund VIII, which is targeting €1.1bn in total, has already exceeded its predecessor
Deutsche Beteiligungs (Dbag) has launched a new fund with capital commitments of more than €1bn, with the private equity firm co-investing €255m alongside investors.
Dbag Fund VIII, which is targeting €1.1bn in total, has already exceeded its predecessor, which closed in 2016 raising €1.01bn. The firm expects the new fund to close in early 2020. It will invest between €40m and €100m in companies valued at around €75m to €250m.
The fund consists of two sub-funds, which include the main fund and a €200m top up fund, making larger transactions of up to €220m possible.
The launch of the new fund also sees Dbag change its investment strategy to focus on taking longer term minority stakes in businesses.
“It became evident during the financial year under review just how attractive such non-controlling shareholdings in family-owned enterprises can be, with the successful sales of Novopress and inexio”, said Torsten Grede, spokesman of the board of management.
In July, Dbag exited electromechanical pressing tools manufacturer Novopress and sold German fibre-optic firm inexio to EQT for €1bn in September.
Dbag said it invested approximately €380m in the 2018-2019 financial year and delivered a net income of €45.9m, up from €29.7m year-on-year. Over a 10-year period, the firm has generated an average return on equity of 11.5%.
The launch of the new fund takes Dbag’s assets under management to about €2.5bn.
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